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© Markit Economics Limited 2013
Purchasing Managers’ Index
MARKET SENSITIVE INFORMATION
EMBARGOED UNTIL: 0900 (UK Time) 24 July 2013
Markit Flash Eurozone PMI
Eurozone stabilises as PMI hits one-and-a-half year high
Flash Eurozone PMI Composite Output Index
at50.4 (48.7 in June).18-month high.
Flash Eurozone Services PMI Activity Index
at49.6 (48.3 in June). 18-month high.
Flash Eurozone Manufacturing PMI
at 50.1(48.8 in June). 24-month high.
Flash Eurozone Manufacturing PMI Output Index
at 52.3 (49.8 in June). 25-month high.
Data collected 12-23 July.
Markit Eurozone PMI
rose above the 50.0 no-change level in Julyfor the first time since January 2012, according tothe flash estimate. The PMI rose for the fourthsuccessive month, up from 48.7 in June to 50.4.Manufacturers reported the largest monthlyincrease in output since June 2011, registering anexpansion for the first time since February of lastyear. Service sector activity meanwhile fell onlymarginally, recording the smallest decline in thecurrent 18-month sequence and showing signs of stabilising after the marked rates of decline seenearlier in the year.New orders fell only marginally during the month,registering the smallest decline since August 2011.The rate of loss of new orders has now eased for four straight months, helping the rate of decline inbacklogs of work ease to the slowest for nearly twoyears in July.New orders for manufactured goods rose for thefirst time since May 2011, buoyed by a slightincrease in new export orders. Incoming newbusiness in the service sector meanwhile continuedto decline, although the drop was the smallest seensince March of last year.The easing in the rate of loss of new business wasa factor helping drive expectations for servicesector business growth in the year ahead to thehighest since April.
Markit (Flash) Eurozone PMI and GDP
The rate of job losses eased during the month,dropping to the lowest since March 2012. Rates of job losses eased in both manufacturing andservices to 18- and 13-month lows respectively.Input costs showed the first noteworthy increase for four months, although the rate of inflation remainedlower than seen at the start of the year. Lower manufacturing input prices contrasted with faster growth of service sector costs.Intense competition caused prices charged for bothgoods and services to fall again, however, droppingat an identical rate to June on average.By country, output rose at the fastest rate for fivemonths in
. Service sector growth hit afive-month high while manufacturers reported thesteepest monthly increase in output since Februaryof last year. Overall job creation hit the highestsince March.In
, the rate of decline eased to the slowestseen since output began falling in March 2012. Thiswas buoyed by a return to growth in manufacturing,which reported the largest rise in production for 17months. The service sector meanwhile saw thesmallest downturn in activity for 11 months.Employment fell across both sectors, though to theweakest extent since April 2012